FHCE 3260 test one fully solved & updated

current ratio - answer-monetary assets/current liabilities -can include credit car liabilities benchmark: 1 emergency fund ratio - answer-monetary assets/monthly living expenses benchmark: 3-6 months monthly living expenses: -monthly PITI (times it by 12 months!!!) monthly living expenses formula - answer-total fixed + total variable -income taxes-savings/12 savings ratio - answer-total savings+employer contributions/total gross income benchmark: 10% cash flow sheet debt ratio - answer-tota liabilities/total assets benchmark: 40 % Total liabilities: current bills, mortgage, auto loan Total assets: checking account, savings account, certificates of deposit, primary residence, automobile, 401(k) front end ratio - answer-annual PITI/total income benchmark: 28% -monthly principal and interest (times by 12) -semiannual homeowners insurance payment (times by 2) -annual real estate taxes -on cash flow sheet back end ratio - answer-annual PITI and credit payments/gross income benchmark: 36% -includes monthly car payment -cash flow sheet rental expense - answer-annual rent and renters insurance/annual income benchmark: 25% -monthly rent -annual renters insurance difference between eMoney and money guide pro - answer-e money is cash flow money guide pro is goal based if an asset increases during the period, does the cash flow increase or decrease from profit? - answer-An asset increase during the period decreases cash flow from profit if a liability decreases during the period, does the cash flow increase or decrease from profit? - answer-A liability decrease during the period decreases cash flow from profit if an asset decreases during the period, does the cash flow increase or decrease from profit? - answer-An asset decrease during the period increases cash flow from profit if a liability increases during the period, does the cash flow increase or decrease from profit? - answer-A liability increase during the period increases cash flow from profit